Small business owner - multiple activities
May 22, 2013 | 25,00 EUR | answered by Steuerberater Thomas Textoris
Hello,
I have been operating a business for domestic care services since 2009. I am a small business owner according to § 19 UStG, with turnover of approximately 10,000.00 EUR in 2009, 2010, and 2011 each.
In 2012, I expanded my business to include drywall construction services. The turnover from my domestic care services business in 2012 was again approximately 10,000.00 EUR. I have continued to include the note about the small business regulation according to § 19 UStG on my invoices.
My drywall construction business consists solely of construction services, for which the recipient of the invoice owes the VAT according to § 13b UStG. I have included the note about the change in tax liability on the invoices. The turnover from this business in 2012 was approximately 43,000.00 EUR.
My questions:
1. Do my § 13b turnover count towards the calculation of total turnover, so that I lose small business status in the calendar year 2013? Because as I have read, small business owners do not change the tax liability and the turnover is not attributable to the recipient of the service, but solely to the small business owner (me) who performs the service.
2. Were the invoices for my drywall construction business in 2012 correctly written with the note about the change in tax liability, or should the small business note have been included instead?
3. How does it work for the year 2013: Do I have to charge VAT for my domestic care services business now? Should the § 13b note be included on the invoices for the drywall construction business?
Thank you in advance for a response.
Dear questioner,
In the context of an initial consultation and considering your fee commitment in accordance with the regulations of this forum, I would like to answer your question.
1: The relevant total turnover of the small business owner is determined according to § 19 (3) UStG. This is based on the taxable turnover according to § 1 (1) No. 1 UStG. Generally, the turnover of the small business owner is taxable and subject to tax, but the sales tax is not levied. The total turnover in the sense of § 19 UStG does not include imports from third countries into the country, intra-Community acquisitions, and certain tax-exempt sales.
In addition to the above principle that no sales tax is levied on small businesses, there are some exceptions. This includes the transfer of the liability for tax (§ 13b UStG) which also applies to the small business owner according to § 19 UStG.
This only applies to the tax owed by the recipient of the service.
The performing entrepreneur according to § 13 b UStG must not be a small business owner (§13 b (5) sentence 4 UStG).
2: Your invoices in 2012 should have been issued with reference to § 19 UStG to avoid misunderstandings.
3: Unfortunately, the small business owner regulation no longer applies to you from 2013, as your turnover in 2012 exceeded 17,500 euros. This means that from 2013 onwards, you must levy sales tax on your turnover for the business of household care. Please note that the small business owner regulation does not expire retroactively, so invoices for 2012 should have been issued "net" with reference to § 19 UStG.
For the drywall business, the § 13 b regulation now applies to you, as the small business status no longer applies. This means that invoices should be issued "net" with a reference to § 13 b.
Best regards,
Thomas Textoris
Tax advisor
